In September 2020, the SEC awarded $ 114 million to a single whistle-blower. The individual provided critical information that led to successful enforcement actions against a company engaged in securities fraud. The whistle-blower had repeatedly reported concerns internally, and despite personal and professional hardships, the whistle-blower alerted the SEC and another agency of the wrongdoing and provided substantial, ongoing assistance that proved critical to the success of the actions. In another case in 2023, the SEC awarded a whistle-blower nearly $ 279 million for information that led to successful enforcement actions. Payments to whistle-blowers are made out of an investor protection fund established by Congress, which is financed entirely through monetary sanctions paid to the SEC by securities law violators.
Source: US Securities and Exchange Commission, “SEC Issues Record $114 Million Whistleblower Award”, https://www.sec.gov/news/press-release/2020-266 ; “SEC Issues Largest-Ever Whistleblower Award”, https://www.sec.gov/news/press-release/2023-89
